UK Business Loans After a Discharged IVA: Ltd Co Routes
A discharged Individual Voluntary Arrangement clears the formal repayment plan but the IVA stays on the credit file for 6 years from start. Mainstream UK SMB lenders decline categorically until the file clears. Specialist routes engage post-discharge at higher pricing. This guide covers the realistic Ltd company funding options 6 to 36 months after IVA completion, including which BBL-reviewed lenders engage at each point.
Director, BestBusinessLoans
Oliver leads BestBusinessLoans's editorial reviews and methodology. With a background in UK commercial finance, he oversees lender research, rate verification and review independence.
Last reviewed: 10 May 2026
Why post-IVA Ltd company applications are still difficult
A discharged IVA is recorded on the personal credit file for 6 years from the start date, not the completion date. A 5-year IVA that completes on time clears the file 1 year after completion. A 6-year IVA that completes on schedule clears the file at completion. Mainstream UK SMB lenders run searches on the directors as well as the company; an active or recent IVA on a director's file flags every standard underwriting model. This applies even where the company itself has clean credit and never traded during the IVA. The 6 years are absolute: the file does not clear earlier because the IVA was completed early or the underlying debts were paid in full.
Months 0 to 12 post-completion
The hardest band. Mainstream lenders decline. Specialist post-decline lenders engage on a case-by-case basis at higher pricing. Realistic options: MCA against strong card-machine flow ( Capify, 365 Business Finance) where the daily settlement provides the underwriting evidence. Specialist post-decline term loans ( Bizcap, JPM Capital, Bolton Finance) at 22 to 36 percent APR for cases that pass the underwriting case-review. Asset finance against owned assets where the asset is the security. Mainstream MCA, term loan and asset finance generally decline.
Months 12 to 24 post-completion
A clean 12-month trading record post-completion is the meaningful milestone. The IVA still flags but the borrower has independent evidence of post-discharge financial management. Specialist lenders engage at slightly tighter pricing than the 0 to 12 band. Some mainstream lenders begin to consider cases with strong supporting evidence ( Just Cashflow, Time Finance have funded post-IVA cases). MCA pricing tightens. Asset-backed lending becomes more accessible. Specialist post-decline term loans drop into the 18 to 28 percent APR band for cases that pass underwriting.
Months 24 to 36 post-completion
24 months of clean trading post-completion brings the application within reach of more mainstream lenders. Funding Circle, iwoca and Aldermore have funded cases at this point. Pricing remains above clean-credit headline rates but the gap narrows. Asset-backed lending against commercial property or significant trading assets is widely accessible. The Growth Guarantee Scheme via accredited lenders engages on a case basis. By month 36 the underwriting picture is materially cleaner although the IVA still flags on the credit file.
After the IVA drops off the credit file
Six years from the IVA start date the IVA clears the file. Mainstream lenders treat the applicant as if the IVA never happened from a credit-file perspective. Some commercial-finance lenders ask broader diligence questions (where the lender does its own review beyond the file) but the IVA is no longer a flag. The applicant rejoins the standard mainstream lender pool. Pricing returns to clean-credit bands.
BBL-reviewed lenders that engage post-IVA
Three groups. Group one, MCA against card flow regardless of credit-file age: Capify and 365 Business Finance underwrite primarily on card-machine evidence and engage at every point post-completion. Liberis and YouLend follow similar logic. Group two, specialist post-decline term loans: Bizcap, JPM Capital and Bolton Finance underwrite on commercial merit including post-IVA cases. Pricing reflects the risk; structures are short-to-medium term. Group three, asset-backed: Allica Bank, OakNorth, Aldermore Commercial and Shawbrook engage on asset-backed cases where the asset value drives the security and the personal credit file is corroboration not determination. Just Cashflow and Time Finance have engaged with post-IVA Ltd company applications case by case at higher pricing.
Practical preparation steps
Five steps before applying post-IVA. First, get the discharge certificate and confirm the IVA is correctly recorded as completed across all three credit reference agencies (Experian, Equifax, TransUnion). Second, build clean post-completion trading evidence: 6+ months of clean business banking, no missed supplier payments, no further credit events. Third, prepare a clear narrative explaining the cause of the original IVA and what has changed since. Fourth, identify the right lender route based on time elapsed (MCA / specialist for 0 to 12 months, broader pool for 12+ months, mainstream for 24+ months). Fifth, expect to provide more underwriting evidence than a clean-credit applicant: management accounts, projections, supplier and customer references. Specialist post-decline lenders treat case-by-case underwriting as the standard, so be ready for a case-narrative conversation with the underwriting team.
FAQ
Can I trade as a Ltd company director during an IVA?
Yes. An IVA does not disqualify a person from acting as a Ltd company director (unlike bankruptcy, which restricts directorship under section 11 of the Company Directors Disqualification Act 1986). The IVA terms may restrict taking on new credit personally, which can affect personal guarantees on company borrowing during the IVA period.
Does my company need to be new post-IVA, or can I use a pre-IVA Ltd?
Either. The lender cares about the director's credit file and the company's trading record. A pre-IVA Ltd that traded cleanly through the IVA period is materially stronger evidence than a newly-incorporated post-discharge Ltd, because the trading record is independently verifiable.
Will my IVA history block a director PG on a new loan?
It can. Lenders running director searches will see the IVA on the file for 6 years from start. Most mainstream lenders that decline directly will also decline on the basis of the PG check. Specialist post-decline lenders accept PG signing post-discharge but the PG carries the same scrutiny as the underlying loan application.
Is asset finance the easiest route post-IVA?
Often yes. The asset is the security so credit-file weight is reduced. Asset-finance lenders against vehicles, plant and machinery underwrite primarily on the asset value and the borrower's ability to service the regular payment. Specialist asset finance lenders may engage post-discharge against a clean asset.
Does the IVA register show me as discharged?
The Insolvency Service maintains the Individual Insolvency Register. A completed IVA is removed from the public register 3 months after completion. The credit-reference agencies update separately. Pull all three credit files to confirm the file recording matches the discharge.
Can I use the Start Up Loan post-IVA?
The British Business Bank Start Up Loan does not categorically decline post-IVA applicants but underwriting is on the merits. A discharged IVA with clean post-completion personal credit is considered case by case. The Start Up Loan is delivery-partner-led, so the partner's underwriting view varies.
Is the Growth Guarantee Scheme available post-IVA?
Possibly. The scheme is open to UK SMEs subject to the accredited lender's underwriting criteria. Some accredited lenders accept post-IVA applications case by case; others decline categorically. The scheme guarantee does not override the lender's commercial decision.
Reviewed by Oliver Mackman, Director. Last reviewed: 2026-05-10.